OMV said Thursday that it estimated the area will reach a production level of 10,000 barrels of oil equivalent per day once more developments come on stream. The company said a submission of the declaration of commerciality was submitted to the semiautonomous Kurdish government.
"We are very pleased with this result," Jaap Huijskes, a board member in charge of exploration and production, said in a statement. "The progress of the development of Bina Bawi as well as the declaration of commerciality are important milestones to further expand our business in this region."
Political disputes over oil revenue between the Kurdish and central government have handicapped Iraq's overall post-war energy development. OMV said it sees the Kurdish region as an important area for growth.
The U.S. Energy Department's Energy Information Administration updated its assessment of Iraq, saying the lack of legislation government the oil and natural gas sector is hurting the country.
"Just a fraction of Iraq's known fields are in development and Iraq may be one of the few places left where much of its known hydrocarbon resources has not been fully exploited," the assessment said.